Azour made his remarks in response to Ahram Online's question about the factors behind the Fund's decision to upgrade the growth outlook for oil-importing countries in the MENA region, including Egypt.
He was speaking during a press briefing the IMF held on Friday to announce its regional economic outlook for the MCP region, which will be officially released from Dubai on Tuesday, 21 October.
Azour said the IMF has raised its 2025 growth forecast for these economies by 0.6 percentage points from its April projections, citing ongoing efforts to curb inflation and maintain fiscal discipline.
"The main drivers of growth among oil-importing countries this year were the rebound in tourism, strong inflows of remittances, and robust performance in sector-specific areas such as agriculture," Azour noted. "Several countries have also succeeded in keeping inflation under control and preserving macroeconomic stability despite global uncertainty."
He added that many oil-importing countries with high debt levels have worked to tighten fiscal policies and strengthen their economic resilience. However, he cautioned that conflict-affected economies, including Lebanon, Syria, Yemen and Sudan, continue to face severe challenges, with only some showing early signs of stabilisation.
Azour also discussed the IMF's role in international recovery and reconstruction efforts in conflict-affected areas, explaining that the Fund contributes technical assistance and policy advice in coordination with the World Bank and United Nations agencies.
"These institutions are currently assessing the scale of damage, immediate humanitarian needs, and long-term recovery priorities," he said, adding that the IMF operates within the international coordination framework established by the Ad Hoc Liaison Committee since 1994.
MENA, Pakistan economies outperform expectations in 2025
Azour urged countries to build fiscal buffers and accelerate reforms amid lingering global uncertainty.
He added that economies of the MCD region have shown greater resilience than expected in 2025, despite persistent trade tensions and regional conflicts.
Azour said the IMF now projects regional growth of 3.2 percent in 2025, up from 2.1 percent in 2024 and above the Fund's April forecast, reflecting stronger performance in both oil-exporting and oil-importing economies.
"The region has once again demonstrated its ability to withstand shocks. The task now is to turn short-term stability into long-term strength by building buffers, modernising policy frameworks, and accelerating reforms that support inclusive and sustainable growth," Azour said.
Oil importers gain from low energy prices, strong remittances, and tourism recovery.
Azour noted that oil-importing economies and Pakistan benefited from lower energy prices, robust remittance inflows, and a continued rebound in tourism, all of which supported domestic demand and growth. Meanwhile, oil exporters saw gains from higher oil production following the faster unwinding of OPEC+ output cuts.
The Fund expects regional growth to accelerate to 3.7 percent in 2026, while inflation is projected to remain moderate, supported by lower food and energy prices and continued monetary tightening.
5th and 6th EFF reviews still pending
Azour noted that Egypt is expected to see increasing economic growth in the current FY2025/2026 and the upcoming FY2026/2027, as well as an improvement in debt levels, which are expected to reduce gradually. He noted that the current Extended Fund Facility (EFF), which finances the country's second wave of economic and structural reforms totalling $8 billion, has achieved notable progress in ensuring the country's financial stability.
He also pointed out that the EFF programme centres on enhancing the private sector's role in the national economy, which requires improving the business environment and increasing the private sector's contributions by revisiting the state's role in the economy, so that it becomes a supporter rather than a competitor.
In this respect, Azour asserted that Egypt needs to develop a clear strategy to support the private sector and increase investments. "All these points are under discussion with the Egyptian team that is here in Washington, and the time of the start of the process of the fifth and sixth reviews of the EFF and the fisrt review of the RSF will be set based on the current discussions' outcomes", said Azour.
Risks remain high
The IMF cautioned that downside risks remain significant, with potential slowdowns in global demand, tighter financial conditions, and persistent inflation in advanced economies that could raise borrowing costs—particularly for countries with substantial financing needs.
The region also remains exposed to geopolitical tensions and climate-related shocks, which could disrupt economic activity. On the upside, faster progress toward peace and economic reforms could yield stronger, more inclusive growth outcomes.
Azour called on governments to seize the current growth momentum to strengthen resilience through three key priorities:
1. Rebuilding fiscal and external buffers to ensure long-term sustainability, particularly where reserves and fiscal space are limited.
2. Reinforcing monetary policy credibility to anchor inflation expectations and maintain price stability.
3. Accelerating structural reforms to diversify economies, empower the private sector, and attract investment that generates jobs—especially for youth and women.
He also stressed that for conflict-affected countries, macroeconomic stabilisation, rebuilding institutions, and securing external support remain crucial for recovery.
IMF support to the region
Since early 2020, the IMF has approved nearly $56 billion in financing for countries across the MENA and CCA regions and delivered more than 385 capacity development projects worth about $36.8 million in fiscal years 2024 and 2025.
Azour reaffirmed the IMF's strong commitment to both regions, emphasising that the Fund will continue providing policy advice, financing, and technical assistance to help countries sustain growth and build resilience.
"The region's ability to weather shocks is evident," Azour said. "The next step is transforming resilience into lasting prosperity through good governance, regional integration, and reforms that promote equal opportunity."
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